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Northland and Yushan progress in Taiwan

26 February 2019
by Craig Richard

Northland Power and Yushan Energy have signed a power purchase agreement (PPA) with Taiwanese utility Taipower for the 300MW Hai Long 2A wind farm, the first project from a 1GW-plus cluster owned by the joint venture.

It will receive the 2019 feed-in tariff rate of TWD 6,279.50/MWh ($204/MWh) for the first ten years of operation and TWD 4,142.20/MWh ($134.53/MWh) for the second ten-year period of the 20-year PPA.

A tiered production cap will be in place throughout both ten-year periods.

Under this, a developer receives 100% of the tariff for production up to 4,200 annual full-load hours; then 75% for production between 4,200 and 4,500 full-load hours; and 50% for production above 4,500 full-load hours.

The joint venture chose the tiered tariff over a flat rate of TWD 5,516/MWh ($179.2/MWh) for 20 years.

Taiwan’s ministry of economic affairs revised the tariff for offshore wind in late January, after reaching a compromise on its proposed FIT rate with the industry.

Several developers missed a 2 January deadline to sign power deals with Taipower, meaning they missed out on a higher tariff rate that was offered when the projects were awarded in the first half of the year.

Taiwan's government then proposed a 12% cut on the FIT for PPA deals signed in 2019, causing uproar within the industry and forcing the negotiations between developers, trade associations and the authorities.